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Stocks: Help with these terms and what words mean?
So we were assigned a math project where we choose stocks...so we can choose 5-10 stocks. We have a budget of $50,000 and we need to spend at least $5000 dollars on each stock. The question is, what do I need to look for in a stock? Where do I look to know how much is a stock? Also, on yahoo.finance.com I see all these words like last trade, P/E, and all that stuff what does all that mean?
Sorry for all the questions, I would ask my teacher for a copy of what these things mean but I didn't get one today. So if anyone could help me I would gladly appreciate it. Thanks!
4 Answers
- Jim ZLv 61 decade agoFavorite Answer
Here is what you need to know for your class. Buy only stocks that are in an uptrend. Buy as many stocks as you can eg: $5000 min of $50,000 you want 10 stocks.
Here are some good up trending stocks. NFLX, BIDU,BRNC,AGNC,CSX,BTU,HS,BRNC,FOSL,CIM
Place $5000 on each of the ten stocks.
Place each of these symbols in the stock box on Yahoo Finance Look at the trend they all trend up, they have higher highs, and higher lows. This is what you want to look for.
Stick with this, and you will dazzle your teacher.
Other things to tell the teacher: 1. Don't put all your eggs in one basket. 2 Only buy stocks that trend up. (the trend is your friend). 3. Stocks with a high P/E are over priced. 4. Some people buy downtrending stocks, "hoping" they will bottom fish. you NEVER catch a falling knife. 5. Penny stocks are scams.
Last Trade= the last price the stock traded at.
P/E ratio = Price to earnings ratio...don't worry about it.
- ?Lv 51 decade ago
Last Trade= Last trade of the day (before After Hours). P/E is price to Earnings. It's a measure how expensive a stock is. Low PEs offer value, High PEs could mean it's overpriced. Your time frame to buy and sell stocks is probably too short to really concern yourself with all these fundamentals. However it's for a good education in stocks. Debt, cashflow and net profits are the prime indicators of stocks. Everything can be found at Yahoo Finance. If you only buy on an uptrend you will pay more for that safety. Take LFBG, it's a penny stock that has been in a downtrend. It is super cheap. It is not a scam. They sell product at Walmart and has increasing revenue. Hardly no one knows about it so it's a penny stock and can offer larger gains. Buy stocks when no one else wants it.
- rottLv 44 years ago
First, I haven't any theory what a lam'ens term is. possibly you advise laymans term? 2nd, many of the numbers are ineffective or (i desire) self-explanatory, like 5:51PM EDT and Jun 14. So, the inventory cost, on the tip of the marketplace on Monday became 15.40 two. the fee on the instant, on the tip of the marketplace became 15.00, which potential the fee fell 40 two cents. the 1st commerce of the day became at a value of 15.25, that would nicely be meaningless in maximum circumstances. The Bid and Ask numbers are no longer considered necessary except the inventory does not commerce a lot of quantity. 5.5 million shares traded on the instant is a quite good quantity yet nowhere close to the quantity that AAPL, MSFT, or IBM might commerce in one day. P/E ratios are subjective and can be important to long-term traders, yet EPS is a greater important extensive type to look at. (good P/E is a low P/E. good EPS is a extreme EPS) Dividends are no longer continuously provided yet once you very own a inventory with a DIV fee, anticipate a value each and every quarter. BTW, that Bid/Ask unfold concerns me. A 2 cent distinctive is okay, yet this one is 37 cents aside. Yeesh!